Trading Update

Churchill China PLC
11 January 2008


For Immediate Release                                            11 January 2008



                              Churchill China plc

                 Trading update - Profit to exceed expectations


Churchill China plc, the manufacturer and global distributor of ceramic
tableware and household products to hospitality and retail markets, is pleased
to advise that following a good trading performance in the key fourth quarter,
it expects to deliver pre-tax profits in excess of current market estimates for
the year to 31 December 2007.


Revenues and profits in the Group's Hospitality division have continued to grow
well, benefiting from strong performances in a number of sectors of the UK
market. Whilst the surge of investment in hospitality by UK pub groups may have
slowed it is evident that the capital spending cycle of hotels, restaurants and
other customers has remained at a healthy level. This robust performance
reflects the continued advantage derived from our consistent investment in
product innovation and market development; underpinned by a high level of repeat
business.


Our Retail division has also made significant progress against its strategic
targets. Whilst overall revenues will be, as expected, lower than 2006, a larger
proportion of these sales have been made to middle market customers leading to
better overall margins. Sales of licensed product, particularly in the Disney
and Sanderson ranges have exceeded our expectations.


Cash generation has also been strong over the second half of the year, with
continued tight control of working capital and the completion of the sale of
surplus land for gross proceeds of £1.1m. The profit associated with this
disposal will be disclosed as an exceptional item in the Group's 2007 results.



Contacts


Churchill China plc                                                01782 577566
Andrew Roper, Chief Executive
David Taylor, Finance Director


Brewin Dolphin Investment Banking                                  0845 270 8610
Andrew Emmott


Buchanan Communications                                            020 7466 5000
Tim Anderson
Rebecca Skye Dietrich



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